Marathon Petroleum (NYSE:MPC) Shares Down 7.5% – Time to Sell?

Marathon Petroleum Corporation (NYSE:MPC)’s share price traded down 7.5% on Tuesday. The company traded as low as $434.24 and last traded at $435.2940. 2,934,460 shares changed hands during mid-day trading, an increase of 19% from the average session volume of 2,464,862 shares. The stock had previously closed at $470.64.

Key Stories Impacting Marathon Petroleum

Here are the key news stories impacting Marathon Petroleum this week:

• Positive Sentiment: Dividend increased: MPC’s board raised the quarterly dividend 10% to $1.10 per share, payable December 10 to shareholders of record on November 18. The increase signals confidence in cash generation and strengthens the income-investment case. Marathon Petroleum Corp. Increases Quarterly Dividend
• Positive Sentiment: Refining outlook remains favorable: Analysts point to strong refining margins, robust fuel demand, surging profits and upward earnings-estimate revisions. Recent commentary also characterizes MPC as attractively valued relative to its five-year performance, potentially supporting the stock if earnings confirm the bullish thesis. MPC Stock Gains on Refining Strength
• Positive Sentiment: Analyst expectations have improved: Multiple reports frame MPC as a potential buy ahead of third-quarter earnings, with investors focused on whether refining performance and key operating metrics can support consensus expectations. Why MPC Stock Is a Smart Buy Before Q3 Earnings
• Neutral Sentiment: Board appointment: David E. Constable will join MPC’s board effective March 1, 2027. The appointment adds experienced leadership but is unlikely to materially affect near-term earnings or valuation. David Constable to Join Marathon Petroleum Board
• Negative Sentiment: Sector selloff and execution risk: Refinery stocks recently suffered a sharp industry-wide decline despite strong results from a peer, highlighting concerns that margins or gasoline-market conditions may weaken. Analysts have also identified potential red flags ahead of MPC’s report, raising the risk of profit-taking after the stock’s substantial year-to-date rally. Marathon Petroleum’s Nov. 3 Earnings Red Flags

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on MPC shares. Bank of America upped their price target on shares of Marathon Petroleum from $410.00 to $426.00 and gave the company a “neutral” rating in a report on Friday, October 2nd. Piper Sandler raised their target price on shares of Marathon Petroleum from $344.00 to $462.00 and gave the company an “overweight” rating in a research note on Thursday, September 3rd. Morgan Stanley lifted their price target on Marathon Petroleum from $265.00 to $453.00 and gave the stock an “overweight” rating in a report on Monday, September 14th. Raymond James Financial raised their target price on shares of Marathon Petroleum from $350.00 to $445.00 and gave the stock an “outperform” rating in a research note on Monday, September 14th. Finally, The Goldman Sachs Group lifted their price objective on Marathon Petroleum from $376.00 to $472.00 and gave the company a “buy” rating in a report on Monday, September 21st. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, Marathon Petroleum has an average rating of “Moderate Buy” and an average price target of $424.31.

Marathon Petroleum Price Performance

The business has a fifty day moving average price of $414.63 and a 200-day moving average price of $287.14. The stock has a market capitalization of $124.07 billion, a PE ratio of 14.62, a PEG ratio of 0.12 and a beta of 0.54. The company has a current ratio of 1.25, a quick ratio of 0.89 and a debt-to-equity ratio of 1.19.

Marathon Petroleum (NYSE:MPC) last announced its earnings results on Tuesday, August 4th. The oil and gas company reported $17.73 earnings per share for the quarter, beating analysts’ consensus estimates of $14.27 by $3.46. Marathon Petroleum had a net margin of 5.48% and a return on equity of 31.96%. The firm had revenue of $51.99 billion for the quarter, compared to analyst estimates of $40.87 billion. During the same quarter in the previous year, the firm posted $3.96 EPS. The company’s revenue for the quarter was up 53.5% compared to the same quarter last year. Research analysts expect that Marathon Petroleum Corporation will post 64.12 EPS for the current fiscal year.

Marathon Petroleum Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 18th will be paid a $1.00 dividend. This represents a $4.00 annualized dividend and a yield of 0.9%. The ex-dividend date is Wednesday, November 18th. Marathon Petroleum’s payout ratio is 13.75%.

Insider Activity

In other Marathon Petroleum news, VP Erin M. Brzezinski sold 570 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $362.79, for a total value of $206,790.30. Following the transaction, the vice president owned 1,576 shares of the company’s stock, valued at $571,757.04. This represents a 26.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, SVP Shawn M. Lyon sold 2,500 shares of Marathon Petroleum stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $350.00, for a total value of $875,000.00. Following the completion of the transaction, the senior vice president owned 12,619 shares of the company’s stock, valued at $4,416,650. The trade was a 16.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 21,691 shares of company stock valued at $7,780,127 in the last three months. 0.17% of the stock is currently owned by corporate insiders.

Institutional Trading of Marathon Petroleum

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Marathon Petroleum in the 2nd quarter valued at about $6,648,958,000. Bank of New York Mellon Corp bought a new stake in Marathon Petroleum in the second quarter worth $1,029,611,000. Bank of America Corp DE increased its position in shares of Marathon Petroleum by 1.6% in the first quarter. Bank of America Corp DE now owns 2,595,084 shares of the oil and gas company’s stock valued at $633,668,000 after acquiring an additional 40,124 shares during the period. Amundi boosted its stake in shares of Marathon Petroleum by 17.5% during the 2nd quarter. Amundi now owns 2,237,930 shares of the oil and gas company’s stock valued at $572,172,000 after purchasing an additional 332,551 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Marathon Petroleum by 16.7% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,508,489 shares of the oil and gas company’s stock worth $385,675,000 after purchasing an additional 215,686 shares during the period. Institutional investors and hedge funds own 76.77% of the company’s stock.

Marathon Petroleum Company Profile

Marathon Petroleum Corporation (NYSE:MPC) is an American downstream energy company engaged in refining, marketing, and transporting petroleum products. Its operations include converting crude oil into gasoline, diesel, jet fuel, asphalt, propane, and other refined products used by transportation, industrial, and commercial customers.

The company markets fuel under the Marathon brand and supplies products to independent marketers, commercial businesses, and other wholesale customers. Marathon Petroleum also owns a general-partner interest and significant limited-partner interest in MPLX Inc, a midstream company that operates pipelines, storage facilities, terminals, and gathering and processing assets supporting the movement of crude oil and natural gas liquids.

Marathon Petroleum’s refining and midstream activities are concentrated in the United States, with assets serving regions across the Midwest, Gulf Coast, and West Coast.